DoD's $111.6M 'BIG SAFARI' contract to Sierra Nevada Company, LLC for technical services awarded via sole-source vehicle

Contract Overview

Contract Amount: $111,644,400 ($111.6M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2024-12-01

End Date: 2026-02-28

Contract Duration: 454 days

Daily Burn Rate: $245.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: BIG SAFARI

Place of Performance

Location: ENGLEWOOD, DENVER County, COLORADO, 80112

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $111.6 million to SIERRA NEVADA COMPANY, LLC for work described as: BIG SAFARI Key points: 1. Contract awarded on a sole-source basis, raising questions about potential price efficiencies and market competition. 2. The contract's duration of 454 days suggests a focused scope of work, but the lack of competition limits transparency on value. 3. Performance is managed by the Department of the Air Force, indicating a focus on aerospace and defense-related technical services. 4. The 'All Other Professional, Scientific, and Technical Services' NAICS code suggests a broad range of potential activities, making specific performance assessment challenging without further detail. 5. The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost control but also carries inherent risks if not closely monitored. 6. No small business set-aside was applied, and the contract is not reported as having small business participation.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is difficult due to its sole-source nature and the broad classification of services. Without competitive bids, it's hard to ascertain if the fixed fee is aligned with market rates or if cost efficiencies were achieved. The CPFF structure requires rigorous oversight to ensure costs remain reasonable and that the fixed fee adequately compensates the contractor for the defined scope. Comparisons to similar sole-source contracts for specialized technical services would be necessary for a more robust value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the unique capabilities or proprietary technology required for the service. The lack of competition means there was no direct price discovery through a bidding process, potentially leading to higher costs for the government compared to a fully competed contract.

Taxpayer Impact: Taxpayers may face higher costs due to the absence of competitive pressure to drive down prices. The government's ability to negotiate the best possible price is diminished in a sole-source scenario.

Public Impact

The primary beneficiaries are likely the Department of the Air Force and potentially other entities within the Department of Defense requiring specialized technical services. The services delivered are broadly categorized under 'All Other Professional, Scientific, and Technical Services,' implying support for complex projects, research, or operational needs. The geographic impact is centered around the Department of Defense's operational areas, with specific locations dependent on the project's nature. Workforce implications could include specialized technical roles being filled by the contractor, potentially complementing or supplementing government personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits transparency and potential for cost savings through competition.
Cost Plus Fixed Fee (CPFF) contract type requires diligent oversight to manage costs effectively.
Broad service category ('All Other Professional, Scientific, and Technical Services') may obscure specific performance metrics and value realization.
Lack of small business participation or set-aside may limit opportunities for smaller innovative firms.

Positive Signals

Contract awarded to a known entity (Sierra Nevada Company, LLC) which may indicate established capabilities.
Fixed fee component provides some cost certainty for the government, assuming the fee itself is reasonable.
Defined period of performance (454 days) allows for focused project execution and management.

Sector Analysis

The 'BIG SAFARI' program is an Air Force initiative focused on rapidly acquiring and delivering capabilities to the warfighter. This contract falls within the broader aerospace and defense technology sector, which is characterized by high R&D investment, specialized expertise, and significant government procurement. Market size for such specialized technical services is substantial, driven by national security needs. Comparable spending benchmarks would typically involve other sole-source or limited-competition contracts for advanced engineering, systems integration, or specialized technical support within the defense industrial base.

Small Business Impact

This contract does not appear to include a small business set-aside, nor is it indicated that Sierra Nevada Company, LLC is a small business. Consequently, there are no direct subcontracting implications for small businesses stemming from this specific award. The absence of small business participation in this sole-source contract means that opportunities for smaller, potentially innovative firms to contribute to this specific requirement are limited.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and program management office within the Department of the Air Force. Given the sole-source nature and CPFF structure, rigorous oversight of incurred costs, contractor performance against milestones, and adherence to the fixed fee is crucial. Transparency is limited due to the lack of competitive bidding, but contract modifications, performance reports, and payment requests would be subject to internal review and potentially Inspector General audits if specific concerns arise.

Related Government Programs

BIG SAFARI Program
Department of the Air Force Acquisition Programs
Specialized Technical Services Contracts
Cost Plus Fixed Fee Contracts

Risk Flags

Sole-source award
Lack of competition
Cost Plus Fixed Fee structure
Broad service category

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $111.6 million to SIERRA NEVADA COMPANY, LLC. BIG SAFARI

Who is the contractor on this award?

The obligated recipient is SIERRA NEVADA COMPANY, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $111.6 million.

What is the period of performance?

Start: 2024-12-01. End: 2026-02-28.

What is the specific nature of the 'All Other Professional, Scientific, and Technical Services' being procured under this contract?

The provided data classifies the service under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' This is a broad category encompassing services not elsewhere classified, such as research and development in the physical, engineering, and life sciences, or specialized technical consulting. Without further details from the contract's statement of work or justification for sole-source award, the precise nature of the services remains unspecified. It could range from advanced engineering analysis and system integration to specialized testing or scientific support for complex defense projects. The 'BIG SAFARI' program context suggests these services are likely related to rapidly acquiring and fielding new capabilities for the Air Force.

How does the Cost Plus Fixed Fee (CPFF) structure typically perform in sole-source defense contracts?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined or when there is significant uncertainty in the cost of performance. In a sole-source scenario, the government negotiates a fixed fee with the contractor, which represents the contractor's profit. The government then reimburses the contractor for all allowable costs incurred. While the fixed fee provides some cost certainty for the government regarding profit, the overall cost is variable. Effective performance under CPFF requires robust government oversight to ensure costs are reasonable, allocable, and allowable, and that the contractor is incentivized to control expenses while meeting performance requirements. Without competition, the initial negotiation of the fixed fee and the ongoing monitoring of costs are critical to achieving value for money.

What are the potential risks associated with a sole-source award for specialized technical services?

Sole-source awards carry several inherent risks. Primarily, the absence of competition can lead to inflated pricing, as the contractor faces no pressure to offer the most competitive bid. This can result in the government paying more than it would in a fully competed environment. Furthermore, a sole-source award limits the government's access to a wider range of innovative solutions or alternative approaches that might be offered by other qualified vendors. There's also a risk of vendor lock-in, where the government becomes dependent on a single provider, potentially hindering future flexibility and cost-saving opportunities. Finally, the justification for a sole-source award must be carefully scrutinized to ensure it is truly warranted and not a result of poor planning or market research.

What is the significance of the 'BIG SAFARI' program in the context of this contract?

The 'BIG SAFARI' (Broad Area Ground Support, Aviation, and Reconnaissance Integration) program is a key initiative within the Department of the Air Force aimed at rapidly acquiring and delivering intelligence, surveillance, and reconnaissance (ISR) capabilities. Contracts under this program are designed to be agile and responsive to evolving operational needs. This specific contract, awarded under the 'BIG SAFARI' umbrella, suggests it supports the development, integration, or sustainment of advanced ISR systems or related technologies. The program's focus on speed and adaptability often influences contracting approaches, sometimes leading to less traditional or more specialized procurement methods, including sole-source awards when unique capabilities are required.

How does the contract duration of 454 days influence the assessment of its scope and potential impact?

A contract duration of 454 days (approximately 15 months) indicates a medium-term engagement. This duration suggests the contract is likely for a specific project phase, a defined service period, or the development and delivery of a particular capability, rather than a long-term sustainment or operational support contract. For a sole-source award, this duration allows for focused execution but also means that the government will need to re-evaluate its needs and the market landscape upon its expiration. The impact is tied to the specific deliverables within this timeframe; if it's for a critical system development, the 454 days represent a crucial period for advancing that capability. If it's for ongoing services, it implies a continuous need that will eventually require re-competition or extension.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 12500 BELFORD AVE, ENGLEWOOD, CO, 80112

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $111,805,500

Exercised Options: $111,805,500

Current Obligation: $111,644,400

Subaward Activity

Number of Subawards: 72

Total Subaward Amount: $8,960,892

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA862021G4009

IDV Type: BOA

Timeline